REAL ESTATE TAXES IN TURKEY

  • 20th May 2022
  • 1416

REAL ESTATE TAXES IN TURKEY

know more about real estate taxes in turkey


We will discuss in this article the most important information about the real estate taxes in turkey, the types of real estate taxes, and the differences between the real estate taxes.

 

  • The most important information about real estate taxes:

1st of all you must know that Real estate taxes should be paid annually at specified rates on real estate, whether the real estate is owned by a person or a company.

we can define the Real estate taxes in Turkey as certain amounts paid by investors and the real estate owner at the tax department.

The second information about Real estate taxes is that imposed on everyone when buying or selling a new property or when transferring ownership, and even when you inherit the property.

In every step, you are going to need a real estate agent like BRAND REAL ESTATE COMPANY starting from planning till you get your house keys.

After investing in the real estate, you will notice that taxes in Turkey are paid in two forms, taxes on residential real estate and taxes on commercial real estate, these taxes are paid once when you buy and sell or when transferring ownership, and they can be paid annually and are in the form of annual fees for certain services or rate.

  • Types of Real Estate Taxes:

Types of real estate taxes paid by investors in Turkey include value-added tax, annual real estate tax, title deed tax, real estate rental tax, and real estate inheritance tax.

No matter how varied and changing the taxes are, you must take care in the right ways to achieve your dream of real estate investment when buying your apartment in Istanbul or in another city in Turkey so you can achieve the benefits from your real estate investment.

  • Value Added Tax:

This tax change according to the type of real estate (commercial or residential) and its location (real estate located in areas of natural risks are exempted from value-added tax). You can obtain a tax exemption in certain cases.

The value-added tax is calculated from the price of the property and ranges between 1% and 18% and is not calculated from the gross area of ​​the property, but from the entire area of ​​the property. Pay VAT only once when buying a property in Turkey.

  • Annual property tax:

The annual tax is paid to the municipalities and varies from one city to another. The type of property plays a eminent role in determining the tax rate as it varies between the capital city and the rest of Turkey's cities. For example, residential real estate in the capital city is paid 0.2% annual tax on the value of the property. Real estate and in cities 0.1% of the property value, and for commercial properties, the annual real estate tax is paid in cities 0.2% and 0.4% in the capital city of the property value, and there is also a difference between the tax on land from 0.1% to 0.2% between cities and the metropolis.

 

  • Title deed tax:

This tax is paid one time when enrolling the title deed at the Real Estate Registry Department in Turkey. The title deed tax is calculated as 4% of the total property value mentioned in the purchase contract.

  • Real estate rental tax:

When renting your property there is a tax you must pay called “rental income tax.” This tax depends on the value of the property’s rent, and each property owner must submit a statement of rental income to the tax office at the end of each March of the year, and there is a certain rate On the basis of which the value of the rental tax calculated as follows:

15% for properties whose rent reaches 18000 TL

20% for real estate with a rental value between 18,000 and 40,000 TL

27% for rented properties with a value between 40,000 and 98,000 TL

35% for rented properties with a value between 98000 and 500,000 TL

40% for rented properties with a value of more than 500,000 TL

  • Inheritance tax:

In case you inherit a property in Turkey, you must pay certain taxes to the government, and the taxes are calculated from the value of the property as follows:

5% of the property value if the value ranges between 510,000 and 1,280,000 TL

7% of the property value if the value ranges between 1,280,000 and 2,780,000 TL

10% of the property value if the property value exceeds 2,780.000 TL

When buying a property in Turkey, you should take care of many things and get clear information about the type of property and what taxes you must pay also.

we are ready to guide you to get the best price and the finest way to own a property and get your tax exemption.

Edit by BRAND real estate®

Similar Properties

26th June 2023

Learn more about Real Estate Appraisal in Turkey

Techniques for obtaining a real estate appraisal in Turkey and the importance of the real estate appraisal document

Read more

21st June 2023

Obtain Turkish citizenship through real estate investment in Turkey

Various real estate investment methods that help to obtain Turkish citizenship

Read more

14th June 2023

Invest next to Istanbul Financial Center in Ataşehir

Buying a property for investment in Ataşehir

Read more